The housing market is shaping for a stronger second half after the Reserve Bank slashed the official interest rate to a low of 1%, just 28 days after its previous cut.
Ray White chairman Brian White, who runs the nation’s largest real estate franchise, says the cash rate reduction to 1% is a further shot in the arm for the property market, which had already been showing signs of improvement.
The latest data from SQM Research shows that the housing markets in Sydney, Melbourne, Hobart, Brisbane, Perth and Adelaide all produced minor price rises in June, while new home sales are dramatically improving.
Developer Harry Triguboff says the rate cut will help the housing market’s recovery. “Of course it will be better, this all helps,” he says.
“Prices are starting to come back. They have hit the bottom already and they won’t go down any more.”